Iraq Targets to Compete with Russia and Iran in Natural Gas Market
Iraq is expected to compete with both Iran and Russia in natural gas market in Turkey and Europe thanks to its geographic location and equipment prices.
“The European Union has real interests in Iraq’s Kurdistan region. Kurdistan’s biggest opportunities will be coming from the European Union which wants to import gas from Middle East and Kurdistan region is on its borders,” said John Roberts.
Roberts and others gathered in Arbil to attend an oil and gas conference organized by the Kurdish government.
“Turkey’s demand for gas will double in the upcoming decade and Kurdistan region should move along in works and start competing in that market,” Robert uttered, calling Iraq to follow the example of Russia and Iran in developing its natural gas production.
“Kurdistan region can start exporting gas after meeting all the needs of the local market. It would be able to aim at Turkish market by the year 2015 and to start competing with Russia and Iran, which is possible because of its geographic location” Saad Saadallah, trade counselor for the Ministry of Natural Resources in Kurdistan Region Government said during the conference.
Aydın Selcen, Turkish consul general in Irbil said on the sidelines of the conference that Turkey’s development rate is very high and the same should diversify its oil and gas import sources. “We export a lot of gas from Russia and the best alternative would be Kurdistan region”, he added.
“Turkey aims to reach the highest level of synergy with the region and we are doing so through highways, airlines as well as oil and gas transportation pipelines via the borders”, Turkish Consul stressed.
“The development in oil and gas sector in Kurdistan region raised my interest”, said Jennifer Coolidge an expert in oil and gas affairs. Turkey and Azerbaijan signed contracts to transport gas to turkey and via turkey towards Europe which jacks up the importance of Iraq gas and helps to start off establishing oil and gas transportation pipelines from Iraq to Turkey and via Turkey towards Europe, the expert added.
Iraq Kurdistan region has 45 billion cubic meters of gas reserves, sources in Kurdish regional government (KRG) confirmed.
Dana Gas and Al Hilal Oil, Emirati companies invest in Kurdistan gas sector. The two companies’ sources say they spent 900 million dollars as investments and produce nowadays 300000 cubic meters of gas used mainly to supply Kurdistan power plants in Irbil, Suleimaniyah and Duhok with their needs.
In a statement at the inauguration session, Kurdish premier Barham Saleh disclosed that the oil and gas law should be adopted before the end of this year.
The conference also saw the announcement of a deal between the KRG and ExxonMobil to explore oil fields in northern Iraq.
The move once again highlighted divisions between Kurdish officials and Iraq's national government,which wants to control all energy contracts signed in Iraq.
The Kurds, who control three provinces in northern Iraq, want to be able to sign contracts with international oil companies to develop their own fields, while Baghdad maintains it has final authority.
Kurdish officials have already signed a number of contracts with smaller energy companies, but the deal with ExxonMobil is significant because it's the first with an international oil major.
Source: Alsumaria